Maker, the management token of MakerDAO and Maker Protocol, witnessed a spike in price today. The altcoin is up nearly 20 percent on the day. This dramatic change in value was primarily attributed to the recent activities of venture capital firm Andreessen Horowitz (a16z) and CMS Holdings.
Altcoin has increased tremendously, whales are carrying coins!
We know Andreessen Horowitz (a16z) for his significant investments in various technology companies. Earlier today, a16z started carrying MKR to cryptocurrency exchange Coinbase. There was probably sales in the background of this transfer. My on-chain monitoring platform Lookonchain reported that a16z has invested 12,864 MKR, worth approximately $12.6 million. The firm transferred 6,900 MKR ($8 million) to a newer address. It also preferred to deposit the tokens on an exchange. Meanwhile, a16z held 12,396 MKR tokens worth about $14.4 million.
1/ The price of $MKR skyrocketed by ~20% today.
We noticed that a16z has been depositing $MKR to #Coinbase to sell recently.
And CMS Holdings also reduced its holdings of recently accumulated $MKR 2 hrs ago. pic.twitter.com/6AvjWf9NYh
— Lookonchain (@lookonchain) July 21, 2023
Simultaneously, CMS Holdings, a private investment firm focused on blockchain and decentralized finance (DeFi), has reduced its recently accumulated MKR holdings. The firm deposited 525 MKR (approximately $614,000 worth) on Binance two hours before the surge. CMS Holdings previously bought 1,325 MKR ($1.54 million) from Binance and Bitget at an average price of $793. The firm is currently holding 800 MKR, worth roughly $936,000.
After these developments, a16z continued from where it left off. The firm has moved another 1,500 MKR to Coinbase, Lookonchain reported. Regarding the subject, Lookonchain shared the following:
1 hour ago a16z deposited 1,500 MKR ($1.73M) again on Coinbase. Another whale did not stake 4,210 MKR ($4.85M) and deposited all MKR on Binance 4 hours ago. Whale has amassed 4,210 ($3.19 million at the time) from Binance at a price of $758. Thus, its profit was approximately $1.66 million.
a16z deposited 1,500 $MKR ($1.73M) to #Coinbase again 1 hour ago.
Another whale unstaked 4,210 $MKR($4.85M) and deposited all $MKR to #Binance 4 hrs ago.
The whale accumulated 4,210 ($3.19M at that time) from #Binance at a price of $758, and the profit is ~$1.66M. pic.twitter.com/Q8tKQwihpw
— Lookonchain (@lookonchain) July 21, 2023
What’s behind the price increase?
This sudden change in the assets of these influential market players probably contributed to the increase in the price of MKR. As large quantities of MKR were sold, the market reacted, leading to an increase in trading volume and subsequently a price increase. According to experts, looking ahead, this sudden increase in the price of MKR can be evaluated in two ways. On the one hand, the activities of large-scale investors such as a16z and CMS Holdings will draw more attention to MKR, potentially attracting new buyers and driving the price higher. However, the decision of these organizations to reduce their assets is likely to raise questions about the long-term value of the token.
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